Personal Finance Unit 3

Which characteristic describes the privatization of Social Security?

• increases the employer’s contribution to Social Security

• raises the retirement age to claim full benefits to 70

• enables Americans to invest their Social Security contributions in the stock market

• reduces benefits across the board by 13 percent

• obtains a loan from the Fed

When will the Social Security fund dry up at its current level?

• 2022

• 2027

• 2042

• 2097

• 2117

Match the type of savings account with its features: YOUTH SAVINGS ACCOUNT

• Schools often sponsor it

• interest rate rises and falls with the market

• members own it

• minimal overhead means higher interest rates

Match the type of savings account with its features: Stock Indexed CD

• Schools often sponsor it

• interest rate rises and falls with the market

• members own it

• minimal overhead means higher interest rates

Match the type of savings account with its features: Credit Union Account

• Schools often sponsor it

• interest rate rises and falls with the market

• members own it

• minimal overhead means higher interest rates

Match the type of savings account with its features: Online Account

• Schools often sponsor it

• interest rate rises and falls with the market

• members own it

• minimal overhead means higher interest rates

Which three factors make starting a business a highly risk investment?

• high coupon rate

• uncertain business conditions

• large amount of capital

• low interest rates

• low liquidity

What benefit does a 401(k) plan provide over an IRA?

• a higher rate of return

• fewer investment options

• less investment risk

• on-hand financial advisors

• employer’s contribution

Match each fee that mutual funds charge investors with its correct description: Shareholding fee

• fee for servicing the account

• service charge for buying and selling investments

• charges for work performed regardless of how many trades you make

Match each fee that mutual funds charge investors with its correct description: Commission

• fee for servicing the account

• service charge for buying and selling investments

• charges for work performed regardless of how many trades you make